Analyst Says Tesla Could Incorporate In Texas After Judge's Ruling On Musk Compensation: 'They Started It, We Will Finish It'
Portfolio Pulse from Chris Katje
A Delaware judge voided Tesla Inc's CEO Elon Musk's 2018 compensation plan, leading to considerations of re-incorporating Tesla in Texas. Analyst Daniel Ives views the ruling as perplexing and anticipates Tesla's move to Texas, which could facilitate a new compensation plan for Musk, aiming for 25% voting rights. Ives maintains an Outperform rating on Tesla with a $315 price target. Tesla's shares are currently down, reflecting uncertainty.
February 02, 2024 | 7:09 pm
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Tesla Inc considers Texas incorporation after a judge voided Musk's 2018 compensation plan. Analyst Daniel Ives supports the move, maintaining an Outperform rating with a $315 target. Shares are currently down, reflecting market uncertainty.
The legal challenge to Musk's compensation and the potential re-incorporation in Texas introduce uncertainty, which typically affects stock prices negatively in the short term. However, analyst Daniel Ives' continued support and the strategic implications of the move could mitigate negative impacts, leading to a neutral short-term score.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100